(2)(a)Tomorrow, Evergreen co. based in California, must pay twenty million Mexican pesos for imports from Mexico. Yesterday the spot rate for the peso was $0.05. Today, the peso appreciated 4% against the dollar. Evergreen could send the payment today to avoid any further possible peso appreciation. However, observations from historical data show that whenever the peso appreciates against the dollar by more than 3%, it experiences a reversal of about 50% of that change on the following day. Given this forecast, Evergreen decides to wait to make its payment tomorrow. Assuming the forecast is true, would you consider this decision reasonable? Provide a quantitative response in support of your position. (b)Suppose a FACTOR will buy an exporter's 180-day receivables at a 2.5% per month discount. In addition, the Factor will charge 1.5% fee for nonrecourse financing. If the exporter decides to factor $5 million in receivables, evaluate the exporter's cost of factoring at an annual percentage rate. [1 year = 365 days]